1 year ago
Hong Kong’s fiscal regulators person decided to clasp the grace play for crypto firms contempt the metropolis grappling with large fraud scandals involving crypto speech platforms JPEX and Hounax successful caller weeks, section media reported connected Nov. 27.
The grace play allows crypto firms to proceed operating successful Hong Kong without a licence until June 2024 successful bid to let ample clip to comply with caller regulatory standards introduced earlier this year.
Despite the caller scams, the Securities and Futures Commission (SFC) believes that abrupt changes to the grace play could beryllium counterproductive, perchance destabilizing the burgeoning virtual plus assemblage successful Hong Kong.
SFC Director of the Licensing and Fintech Unit Wong Lok-hei said:
“Scams tin hap with oregon without the grace period.”
Meanwhile, SFC CEO Leung Fung-yee echoed the sentiment and said investors indispensable beryllium wary of schemes offering unrealistically precocious returns.
She added that platforms similar Hounax are not regulated entities, and the SFC does not person the powerfulness to unopen down their operations directly.
High-profile crypto scandals
The full fig of investment-related fraud cases successful Hong Kong from January to September was a staggering 4,331 — amounting to losses of astir HK$2.82 billion.
The JPEX and Hounax cases, involving deceptive advertizing tactics and restrictions connected withdrawals, person revealed important gaps successful the regulatory oversight of integer assets.
The Hong Kong constabulary person precocious escalated their actions against fraudulent activities successful the crypto sphere, arresting 30 much individuals linked to JPEX, bringing the full fig of arrests to 66.
Despite these arrests, nary ceremonial charges person been pressed, and the suspects person been released connected bail. The JPEX ungraded has near 2,623 radical victimized, with losses estimated astatine astir HK$1.6 billion.
Meanwhile, authorities precocious issued warnings against Hounax aft 131 victims who collectively mislaid adjacent to HK$120 cardinal filed complaints against the platform. The astir important azygous reported nonaccomplishment progressive a 69-year-old pistillate who was defrauded of HK$12 million.
In effect to these incidents, the Hong Kong Police person advised the nationalist to beryllium vigilant, particularly regarding unsolicited concern opportunities connected societal media, suspicious mobile apps, and unverified websites. The SFC has besides warned that platforms similar Hounax are suspicious and person employed deceptive tactics to lure investors.
The station Hong Kong to clasp grace play for crypto firms contempt caller scandals appeared archetypal connected CryptoSlate.
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